Broadcasters facing more cuts: Turnbull

Communications Minister Malcolm Turnbull has foreshadowed deeper cuts to the ABC and SBS in coming years, warning the "age of entitlement" for the public broadcasters is over.

In an interview with Fairfax Media, Mr Turnbull said the broadcasters, whose funding has been cut by $43.5 million over four years, should be relieved the axe did not fall harder on them in the May budget.

The Abbott government's efficiency review of the ABC and SBS has identified tens of millions of dollars worth of potential savings and will be presented to the ABC board this week.

The ABC and SBS managing directors argued in Senate hearings last week that the broadcasters should be allowed to reinvest any savings identified through the review into new programs and services – an argument Mr Turnbull dismisses as "ridiculous".

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"I can understand why that's what they might ask for but if there's money that can be saved – and there is – why should it not contribute to the reduction of the deficit?" he said.

"Haven't they read Mr Hockey's speech? The age of entitlement is over. Cuts have been made to the ABC in the budget, which we have said are a down payment on the review. That means we would expect more savings to be forthcoming following the completion of this process."

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Mr Turnbull, who last week launched a new parliamentary Friends of the ABC group, dismissed concerns further cuts could put at risk popular programs such as the children's television program Peppa Pig or World Cup soccer broadcasts.

"We want to make sure any savings are achieved with the minimal – in fact, a nil – impact on programming," he said. "Without an exercise like this, I think the ABC ultimately would have cut programming because this is harder."

The 146-page efficiency review recommends closer co-operation between the broadcasters, including moving SBS into ABC headquarters – a move former prime minister Malcolm Fraser says would be "the first step towards the abolition of the SBS".

The review, led by former Seven West Media chief financial officer Peter Lewis, is also expected to recommend increasing the amount of advertising on SBS television and outsourcing some payroll, human resources and legal functions to the private sector.

Although Mr Turnbull cannot force the broadcasters to accept any of the review's recommendations, he says he expects them to make tough savings decisions. He is prepared to make public recommendations to them on potential savings measures.

Mr Turnbull said the ABC and SBS should be relieved they were spared a permanent efficiency dividend in the May budget, which would have required deep and continuous cuts to spending.

According to Liberal Party sources Mr Turnbull lobbied against an efficiency dividend, which was being considered by the government's Expenditure Review Committee.

Mr Turnbull refused to comment on this.

"I couldn't possibly comment on any of the processes leading up to the budget," he said.

The ABC's managing director, Mark Scott, told Senate hearings that the broadcaster would become less compelling and relevant if it could not reinvest savings in new services such as News 24 or iView.